CONTROL

I N M A N A G E M E N T
WILSON LEWINFREUD PULGO
IN YOUR
OPINION?
CONTROLLING o Controlling means ensuring
that activities in an organization
iN MANAGEMENT are performed as per the plans.

o Controlling also ensures that an

organization’s resources are
being used effectively and
efficiently for the achievement
of predetermined goals.
 NATURE OF
CONTROLLING
Goal Oriented Function
A function of management
ensures that the overall directions
of individuals and groups are
consistent with short- and long-
range plans of the organization.
 Is applicable to all types of
organizations business and non-
business and at all managerial
levels.

Pervasive
Function
 is not a one-time activity.
Rather, it is a dynamic process
that involves constant analysis of
actual and planned performance.

The resultant deviations, if

any, are corrected as per the need
Continuous of the situation.

Function
 Under controlling past
Both backward- performance is analyzed,
looking and therefore controlling is backward
forward-looking looking. Based on this past
performance analysis, remedial
Function action is taken to make future
performance better, in this way
controlling is forward looking.
Dynamic Process
Since controlling requires
taking reviewable methods,
changes must be made wherever
possible.
 George Terry says, the function of
controlling is positive – it is to make things
happen, i.e. to achieve the goal within stated
constraints, or by means of the planned
activities.
Positive Controlling should never be viewed
Process as being negative in character – as a hurdle
in getting objectives won. Controlling is a
managerial necessity and a help, not an
impediment or a hindrance.
George Terry
George R. Terry (1909–1979)
Terry's elements included
planning, organizing,
directing, coordinating,
controlling, and leading
human efforts.
 WHY ARE
CONTROLS
NEEDED?
 If all personnel always did what
was best for the organization –
and even management – would
not be needed
Would it be
Possible…?
IMPORTANCE
OF
CONTROLLING
Helps in Achieving Organizational Goals

The controlling function measures

progress towards the
organizational goals and brings to
light/indicates corrective action.
 A good control system enables
management to verify whether the
standards set are accurate or not by
careful check on the changes
taking place in the organizational
environment.

For
Evaluating/Judging
Accuracy of
Standards
 By the process of control, a
manager seeks to reduce wastage
of resources.
Making Efficient
use of
Resources
A good control system ensures that
employees know well in advance
what they are expected to do &
also the standard of performance.
It thus motivates & helps them to Improve
give better performance. Employee’s
Motivation
 In controlling each department and
employee is governed by
predetermined standards which are
Facilitating well coordinated with one another.
Control provides unity of
Coordination in direction.
action
 Controlling creates an atmosphere
of order and discipline in the
organization by keeping a close
check on the activities of its
employees.
Ensuring Order
and Discipline
CONTROLLING
PROCESS
Setting Performance
Standards
Standards are the criteria against
which actual performance would
be measured. Thus, standards
become basis for comparison and
the manager insists on following of
standards.
 Performance should be measured
in an objective and reliable manner
which includes personal
observation, sample checking.

Performance should be measured

in same terms in which standards
have been established, this will
Measurement facilitate comparison.

of Actual
Performance
 This step involves comparison of
actual performance with the
standard. Such comparison will
Comparing reveal the deviation between actual
and desired performance.
Actual
Performance If the performance matches the
with Standard standards, it may be assumed that
everything is under control.
 The deviations from the
standards are assessed and
analyzed to identify the causes of
deviations.
Deviations are analyzed in the
Analyzing Deviation light of pre-determined deviation
tolerance limit and key result
areas.
 It is neither economical nor easy to
have a check on all the activities of
an organization. Hence, the
manager should pay more attention
on those activities which are
Critical point control important and critical to the
success of an organization. These
(CPC) are known as Key Result Areas-
KRA’s.

Example: 2% increase in stationery cost is not critical.

But 2% increase in wages Salaries is critical.
 A manager should take corrective
action only when there is
exceptional deviation i.e. when
they cross the permissible limit
Management by or acceptable range. Deviations
Exception (MBE) within acceptable range are
ignored.

Example: Wastage within Normal Wastage Range

may be ignored. But if wastage crosses this limit
and becomes Abnormal then management should
control.
 The final step in the controlling
process is taking corrective action.
No corrective action is required
Taking when the deviations are within the
acceptable limits. But where
Corrective significant deviations occur
Action corrective action is taken.
 LIMITS OF
CONTROLLING
 Generally, no enterprise can
control external factors such as
government policies, technological
Little Control changes, competitions etc.
on External
Factors
 Control is often resisted by
employees. They see it as a
restriction on their freedom

Resistance
from
Employees
 Control is a costly affair as it
involves a lot of expenditure of
time and efforts.

Costly Affair
 Control system loses some of its
effectiveness, when standards
cannot be defined in quantitative
Difficulty in terms. In the absence of
quantitative standards, comparison
Setting with standards becomes difficult.
Quantitative
Standards
RELATIONSHIP
BETWEEN
PLANNING AND
CONTROLLING
 Plans provide the standard for
controlling. If the standards as
the first step in controlling
Planning is pre- process are not set in advance
managers have nothing to
requisite for control.
controlling
 It is fruitful when control is
exercised. It discovers deviations
and initiates corrective measures.
Planning is Controlling ensures that work
has been done according to
meaningless without planning.
controlling
Effectiveness of planning can be measured with the help of controlling.
 Planning is a future oriented
function as it involves looking in
advance and making plans based on
forecasts about future conditions.

Controlling is referred to as looking

Planning and forward because the corrective
action in controlling is taken to
controlling both prevent the recurrence of the
are forward deviations in future.
looking
 Planning is looking back
Planning and because new planning is
controlling guided by the problem
are both identified in the past.
looking back Controlling is looking back
as it compares the actual
past performance with
standards.
CONTINGENCY
PLAN
 WHAT IS A
CONTINGENCY
PLAN?
 A contingency plan is a proactive
strategy that describes the
course of actions or steps the
management and staff of an
organization need to take in
response to an event that could
happen in the future. It plays a
significant role in
business continuity, risk
management and disaster
Contingency recovery.

Plan
5 Phases of Contingency Planning

PROGRAM PLANNING IMPLEMENTATION TESTING & PROGRAM

MANAGEMENT EXERCISE IMPROVEMENT
 Most organizations start by
recruiting a contingency planning
team that includes at least one
representative from each department
and every level of management down
Program to the most entry-level positions. The
Management team members identify the objectives
of the contingency plan for each
department, and then the team
conducts realistic risk assessments
that lead to creating the outline for
responding to every potential threat.
 Have the planning team
conduct a thorough, realistic
risk assessment and business
impact analysis. The risk
assessment will be the basis
for the business impact
analysis, followed by hazard
prevention and risk mitigation
policies.
Planning
 Identify the major events that
could have a negative impact
on the course of your
business and on the key
resources, such as employees,
List Down Key machines, IT systems etc.
Risks
 Once you have created a list
of all the possible risks that
could occur in different
areas of your business, start
Prioritize the Risks prioritizing them based on
the threat they pose.
based on their
Impact
Create Contingency Plan for each Event

In this step you’ll create separate plans that outline the actions you
need to take in case the risks you identified earlier occur.

Consider what needs to be done in order to resume normal operations

after the impact of the event.
 The contingency plan will
spell out clearly who (both
internally and externally) gets
notified and in what order.
The first-tier people are most
Implementation affected by the event and need
information that will enable
them to take immediate
action.
 If your company has
completed a contingency plan,
you will have fewer worries
depending on the exact
situation.
Testing & Exercise
 Just because the immediate threat has
passed does not mean there isn’t work
to do following any disaster or disease
outbreak — human or animal.
Although most major companies have
been involved in short-term
Program emergency situations, it makes good
business sense to have long-term
Improvement support plans in case you’re dealing
with an emergency, epidemic, or
pandemic for days, weeks, months, or
even years.
THANK YOU
FOR
LISTENING